KUALA LUMPUR: Kuwait Finance House (KFH), the first foreign Islamic lender in Malaysia, is not in a hurry to wind down its operations here and expects the exercise to be fully completed next year.
KFH is also evaluating the potential sale of its retail portfolio and exploring the transfer of the retail banking employees to the buyer of the retail portfolio.
KFH Malaysia acting chief executive officer Ida Aizun Husin said there will be no interruption to services throughout the period as the company is determined to wind down responsibly.
Upon completion of the wind down process, Ida said the lender will no longer operate in Malaysia.
"We anticipate a progressive wind down, potentially completing within 2025. There will be no rushing. We will wind down responsibly.
"Throughout this period, there will be no interruption to our services. We are committed to maintaining the high level of service our clients expect," she told Business Times in an email reply.
She said the company currently employs slightly over 300 people.
As the Islamic lender shuts down its operations here, Ida said the company has outlined a comprehensive off-boarding programme in place for its non-retail banking employees.
"As we are evaluating the potential sale of our retail portfolio, we are exploring the transfer of our retail banking employees to the buyer of the retail portfolio. Of course this is all preliminary. There is an entire process that needs to take place," she said.
Meanwhile, its retail financing will be included as part of the retail portfolio sale. As for corporate financing, she said these accounts will remain active during the designated wind down period.
The bank is proactively reaching out to each client individually to engage them in the off-boarding process of their respective financing facilities. This is to ensure clear communication and a smooth transition.
In a statement last week, KFH announced its plans to exit Malaysia after 19 years of operation.
The bank said the closure is aligned with its international business strategic review to focus and expand its regional market in the Gulf Cooperation Council and Middle East.
As part of ensuring a smooth transition, the group said KFH Malaysia is exploring the potential sale of certain portfolio segments to prospective buyers, all subject to regulatory approvals.
The entire process will adhere strictly to Malaysia's regulatory frameworks, ensuring compliance with Shariah principles.
Ida was appointed as the acting CEO after Mohd Hazran Abd Hadi stepped down in June.
Mohd Hazran left the bank after five years at the helm and was said to depart to pursue personal endeavours.
For the financial year ended Dec 31, 2023, the bank recorded a pre-tax profit of RM88.1 million, up 22.7 per cent from the previous year. This was achieved on the back of a revenue of RM371.6 million.
Its total assets grew to RM7.6 billion from RM7.1 billion in 2022 and net assets per share rose 5.08 per cent to RM1.24 billion in 2023 from RM1.18 billion the previous year.